P.N. Nag JUDGMENT
S.S. Chadha, J.
(1) This appeal has arisen out of the judgment dated December 21. 1988 of the learned -Single Judge hooking that the judgment of the Division Bench dated December 2. 1988 in Cwp 2440/88 operates as a res judicata in the suit.
(2) The Delhi Electric Supply Undertaking (for short called DESU.) decided to install two numbers power generating sets of 67.5 Mw capacity each in place of the old power plant at Rajghat. Desu entrusted the job of disposal of 'B' Thermal Power Station of Rajghat Power House to Dgs &D. New Delhi so that the premises occupied by 'B' Thermal Power Station could be vacated and two new power generating sets of 67.5 Mw each be commissioned. DGS&D. invited tenders for sale of 'B' Thermal Power Station Rajghat, Delhi. The tender offer of the appellant was accepted and a sale letter was issued. It is unnecessary to refer to the intervening period or negotiations. An amended sale letter was issued by DGS&D on January 8, 1988. According to the terms of the sale, 'B' Station at Rajghat Power House consisting of two numbers Turbo Alternators connected with four boilers as detailed in the tender enquiry read with subsequent amendment letters dated October 27, 1987 and November 12, 1987 was agreed to be sold at a price of Rs. 1,65,61,007 plus local tax as applicable. A sum of Rs. 1 lakh received along with the tender and Rs. 10 lacs received along with the letter dated December 11/14, 1987 had been adjusted towards the sale value. According to the terms of the sale, a sum of Rs. 6,56,100 was to be paid by January 13, 1988 and Rs. 24,84,151 by January 22, 1988 and the balance payment of Rs. 1,23,20,756 plus sales tax was to be made within 90 days from the date of the receipt of letter i.e. April 8. 1988.
(3) The appellant did not deposit the amount and asked for the extension of time. DGS&D in their letter dated May 19, 1988 extended the date for making the entire balance payment due along with the compensation charges for delayed payment as per the terms of the contract and also sales tax to June 8, 1988. By letter dated July 22, 1988 the extension of time was again granted. The appellant was allowed to make payment of the balance of the 25 per cent of the cost of sale as provided in the sale letter dated January 8, 1988 plus compensation charges as per terms to make up for 25 per cent of the total payment by August 10, 1988 and to make payment of the balance of the contract value, viz., Rs. 1,23,20,756 plus compensation charges as per contract within 30 days of the issue of Sro which was to be issued after the receipt of payments of the balance of 25 per cent.
(4) A circular dated July 30, 1988 inviting risk resale tender notice for the sale of 'B' Station at Rajghat Power House, New Delhi was issued. The date and time of receipt of renders was fixed as August 29, 1988 at 1.30 p.m. and the date and time of opening of tenders was fixed as August .29, 1988 at 3.00 p.m. The date of the risk resale tenders for filing and opening was extended to September 29, 1988 at the same time.
(5) The appellant did not complete the deposit of 25 per cent of the sale price as given in the extension dated July 22, 1988 by August 10, 1988. The appellant sought extension of time to make the payment of the balance of the contract value but the time was not extended. The appellant, however, deposited a sum of Rs. 13,49,251 towards 25 per cent of the quoted price on August 25, 1988 and also paid another sum of Rs. 2,17,000 towards interest/compensatory amount on August ,
(6) The Government of India DGS&D by letter dated September 16, 1988, cancelled the contract of the appellant as the appellant failed to make the payment as per the contract terms despite extension up to February 15, 1988 up to May 2, 1988 up to June 8, 1988 and the last extended time limit having expired on August 20, 1988. The earnest money........